Infrastructure Opinion

Australia’s booming digital infrastructure plans

Jomar Teves Aug 2, 2023

2 min read

Digital infrastructure is pivotal in driving economies and facilitating innovation as the world becomes increasingly interconnected. Australia is a shining example of a digital corridor, providing the foundation for robust digital ecosystems that foster collaboration, data sharing, and market growth.

With its impressive connectivity advancements and strategic geographical positioning, Australia has become a key player in global data traffic, solidifying its status as an emerging digital powerhouse.

The Great Southern Route: Enhancing global digital stability

Australia’s strategic location as a vital thoroughfare for global data traffic is a result of the Great Southern Route, a network of subsea cable connections. By routing through Australia, subsea cable operators gain a significant advantage, bypassing potential risks from geopolitical conflicts and natural disasters in the Asia-Pacific region. This positioning establishes Australia as one of the most secure and dependable locations for handling transpacific digital traffic, particularly from the West Coast of the United States.

Moreover, Australia’s connectivity extends to the Middle East through the Oman Australia Cable (OAC) and Southeast Asia, facilitating efficient transpacific routes that interlink the United States and Europe. This alternative to the conventional transatlantic route ensures that digital traffic remains within democratic nations, bolstering cybersecurity and instilling confidence in the movement of sensitive data globally.

Growing digital capacity and connectivity

Investments in connectivity across the Pacific have surged with projects like Southern Cross NEXT, launched in 2022. This network offers direct, low-latency connectivity between Sydney and Los Angeles, with a landing site in New Zealand. The rising demand for cloud services, content, digital media, and e-commerce capabilities has necessitated additional capacity between Australia and the U.S., reflecting the maturity of Australia’s digital economy. With multiple options for moving digital traffic between the two countries, digital ecosystems in both nations can exchange data quickly and reliably, strengthening their economic ties.

Australia’s commitment to enhancing digital connectivity extends beyond the Asia-Pacific region. The Australia-Singapore Digital Economy Agreement, in effect since 2020, is one of the world’s most ambitious digital free trade agreements. Deploying infrastructure in strategic locations like Perth instead of constrained markets enables direct, low-latency connectivity and business growth without expanding infrastructure in neighbouring countries.

While subsea cable landings provide essential digital capacity to Australia, the real value emerges on land through interconnected digital ecosystems of service providers and enterprises. According to the Global Interconnection Index (GXI) 2023, Melbourne and Sydney are expected to experience remarkable growth in interconnection bandwidth over the next five years.

With vendor-neutral colocation IBX data centres in Australia’s six largest metros, Equinix is pivotal in providing the backbone for the Australian digital economy. Moreover, their pursuit of sustainable operations, including green energy purchasing, reflects their dedication to unlocking long-term power purchase agreements that will further support Australia’s growth of renewable energy infrastructure.

As businesses and governments prioritise digital transformation, Australia’s thriving digital corridor will play an increasingly significant role in shaping the future of global connectivity and collaboration.

Know more about Australia’s latest data trends, strategies and emerging technologies by registering for the upcoming Annual Aus Government Data Summit.

Jomar Teves

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After four years in business school and working for multinational clients, Jomar believes he can improve the world through his writings via Public Spectrum, by informing the public on the latest news and updates happening around the government and society. Jomar has eight years experience as a writer and has a degree in Business Administration and Entrepreneurial Marketing.